July, 2011
-- You have heard the warnings from the Schumers and the Obamas and the
Wydens. The evil conservatives want to push granny off the cliff
after a last meal of dog food. Oh brutish beasts, thy name is a
curse and is a Tea Party from Hell. If you don't raise the debt
limit, U.S. Bond ratings will go in the tank, the stock market will
collapse, Social Security payments will stop, Medicare payments will
stop, desperately needed life-saving pharmacy medications will be
denied to our children, elderly and the poor.

It's the
last days of love in America, the opening of the gates of a fiscal,
ghastly hell.

Now, some truth.

This isn't
nuclear physics. If you make two thousand dollars per month, and
you spend two thousand, five hundred dollars a month, then you have to
come up with five hundred dollars somewhere to pay all your
bills. You can steal it, print it in your basement or borrow it
from the bank, relatives or friends.

Or, you
can take a look at your bills and decide to prioitize starting today.

On your
list is the house payment, insurance payments, food, gasoline, and
stuff like that. Al;so on the list are two visits to a good
restaurant per month, the membership fee for a good athletic club where
you keep in shape and two credit cards you use to stock your wine
cabinet, purchase reconditioned stuff for the game room and take the
occasional weekend jaunt to the Indian casino on the coast.

Looking at
the numbers, you see that if you don't add even more debt by buying
even more stuff next month -- then, cut back on some extras, you don't
need to borrow any money. You can cut back on game room antiques,
collectible vintage wine and the number of casino trips. You
still get all of them, but only half as many as before.

By
stopping the growth of debt, and instead making a few simple cuts, you
can pay the really serious bills and still have a few extras.

The government can do
exactly the same thing.

In the
case of this Debt Limit the same process will work. Use the
revenues that are comiing in from paycheck tax collecting to pay the
interest on the debt bonds, and to cash out folks who want to just cash
in their bonds. Next, use those revenues to cover the cost of the
military. (A few less trips there would be useful.) Then
you cover the entitlement checks for the old folks and the poor folks.

And here's
the key to being free.

Unless you
rate collecting vintage wine the same as making your house payment, you
are soon going to get down to things that aren't as important as other
things. Giving billions to foreign governments who hate America
would be one of these. Giving giant subsidies to General Electric
to make windmills whose blades kill the endangered California Golden
Eagle would be another place to cut. Funding Harry Reed's next
Nevada Cowboy rodeo event would be another. Sending the
President's wife with an entourage to every country on the globe on a
goodwill tour would be another expense to question. Sending
Hillary Clinton to Italy to host a Gay Pride event would be another.

Yes, the
air will fill with screams of pain. These people look like
adults, but are actually children who are angry when you don't buy them
a candy bar at the checkout counter.

The net result?

Anger from
a lot of people used to lavish treatment paid for by the
government. Frowns from corporate CEO's and big union hotshots
who donated a lot of money to certain politicians, expecting crony
capitralism to bill the taxpayers for a lavish payback.

And,
you'll have a triple-A bond rating because those things are based on
what you do about your bond interest. The bond rating
people could care less what you stop giving to Kenya, the ethanol
interests or public broadcasting. If they get what they're owed,
that is a fine and healthy, proper and A-merican way to look at money.

When
they see that you take care of them first, they're going to be very
disappointed?

If you see
this predicted disaster starting to loom up on the mainstream media
screens and pages, know that it is being intentionally generated by
choices made by the government pals of those magazines, newspapers and
networks. These choices will be made for political, not financial
reasons.

With the
revenues we have coming in, there is no disaster ahead -- unless some
folks want one.

If you
can't guess who would want one, at present, you're a Progressive, and
belong in a Soviet-type agricultural commune. You're too stupid
to vote.